Iowa lawmakers are preparing for possibly $60M less funds - KWWL - Eastern Iowa Breaking News, Weather, Closings

Iowa lawmakers are preparing for possibly $60M less in federal funds


The top leaders in the Iowa legislator say the state budget planning is more difficult right now because of the tax-and spending stalemate between the U.S. Congress and the President.

The Speaker of the Iowa House Kraig Paulsen and Senate Democrartic Leader Mike Gronstal spoke about it on IPTV's "Iowa Press" program Friday.

Paulsen says that if the proposed federal budget cuts aren't averted, the state will lose up to 60 million dollars in federal support.

Gronstal says lawmakers are preparing for the worst case scenario.

 "We are always subject to certain level of limbo with the federal government. We don't know what they're going to do next October's budget. We don't really have a budget for next year," Gronstal said. "But the size of the problem is fairly easy to identify--kind of worst case scenario."

The largest share of federal aid in the state budget covers Medicaid, food stamp benefits, and the Bush tax cuts.

Powered by Frankly